Accounting rules
In its statement of financial position, the Group recognises a contract asset that is the Group’s right to remuneration in exchange for goods or services that the Group transfers to the customer. An asset is recognised if the Group satisfies its obligation by transferring goods or services to the customer before the customer pays or before the payment deadline.
In its statement of financial position, the Group recognises contract liabilities that are an obligation for the Group to provide goods or services to customers in exchange for which the Group has received remuneration (or upon which the amount of remuneration depends) from customers.
If the customer paid remuneration or the Group has the right to an unconditional amount of remuneration (i.e. a receivable), then prior to the transfer of goods or services to the customer the Group treats the contract as a contract liability when payment is made or becomes due (depending on which is sooner).
Significant judgements and estimates
Uninvoiced revenue from sales at the end of financial period
Unsettled energy sales values are estimated on the basis of estimated electricity consumption in the period from the most recent meter reading to the end of the financial year.
Assets and liabilities arising from contracts with customers
| Assets arising from contracts with customers |
Liabilities arising from contracts with customers |
|
|---|---|---|
| As at 1 January 2020 | 330 447 | 115 701 |
| Increase due to prepayments | − | 150 064 |
| Transfer from contract assets to receivables | (8 018) | − |
| Impairment | 17 | − |
| Liabilities resulting from sales adjustments | − | (8 303) |
| As at 31 December 2020 | 322 446 | 257 462 |
| Change in balance due to prepayments | − | 204 081 |
| Impairment | 54 | − |
| Change in non-invoices receivables | 90 408 | − |
| Liabilities resulting from sales adjustments | − | (1 207) |
| As at 31 December 2021 | 412 908 | 460 336 |
The balance of assets arising from contracts with customers mainly covers uninvoiced electricity sales, while the balance of liabilities arising from contracts with customers mainly covers advances received from connection fees.